The Enlightened Consumer

Empirical data shows that customers are becoming more and more demanding. In a recent study by NFI research, close to 90% of senior executives and managers revealed that they found their customers to be more demanding today than a few years ago, with close to one-third finding their customers to be extremely more demanding nowadays.

It goes without saying that the internet has been absolutely critical to shaping this trend. Never before have customers had such a wealth of product reviews, customer service nightmare stories, and inter-brand comparisons at their disposal. This is truly the age of the enlightened consumer--the one who is armed with data and isn't easily misled by corporate obfuscation.

Which is why the second key finding of the NFI study is so interesting. The researchers found that a huge majority (95%) of these senior execs and managers felt they were successful at meeting their customers demands; again, close to one-third indicated that they were extremely successful in doing so.

Hold on one second! This seems to be counterintuitive, and since the folks at NFI are pretty diligent in their research methods, I can't help but thinking that some of these senior stakeholders might be giving themselves an unwarranted pat on the back.

In this space last week, Jonathan Levitt posted a damning example of exactly how NOT to treat customers in a time of stress and crisis. Want more evidence? Take a look at the backlash being directed at a lot of companies for including arbitration clauses into sales agreements, which abrogate the rights of dissatisfied customers to launch class action suits in the event of product defects. Still not convinced? How about the fact that our online surveys regularly show iPSI scores with broad areas for improvement and onsite purpose of visit accomplishment rates of less than 60%? Can a site really call itself successful when four in every ten site visitors are clicking away without completing their tasks?

Some friendly advice to decision makers: don't underestimate the resourcefulness of your customers, and don't overestimate your understanding of their needs. Be humble, listen to their demands, and take action. Otherwise, you will find that the enlightened consumer can very quickly morph into the high-maintenance consumer.